If you really love the place, pay up for it. If you have to put more money down, then so be it.
If you don’t really love it, then let it go. I doubt the seller’s going to get a higher appraisal going forward. The appraisal’s the appraisal. They’ll have to lower the price unless someone else comes along and is willing to put up more of a down payment to bridge the financing gap.
